Consumer responses to industrially processed food in hospitality: Is an authenticity crisis looming?

Hospitality establishments increasingly use industrially processed foods that customers assume are prepared from scratch. Although an open secret in the industry, consumer responses to this practice remain unexplored. Drawing on psychological contract theory, we examine whether industrial food use constitutes an authenticity transgression. Across an exploratory survey and three preregistered experiments examining French bakeries and Italian restaurants, we demonstrate that consumers hold implicit artisanal preparation expectations. We find that information about industry-wide use of industrial food is discounted when evaluating a specific firm. Yet, the same information leads to a severe backlash when attributed to a specific firm, especially in the case of authenticity-positioned establishments. The effect is explained by diminished warmth and competence perceptions. Authentic outlets suffer 2–4 times greater evaluation declines than inauthentic counterparts. In terms of recovery we find that customers expect that authentic firms abandon the practice; verbal justifications do not improve responses. The research demonstrates that the use of industrially processed food can become a normalized practice while still being criticized by customers. However, this practice can lead to an authenticity crisis when attributed to a specific firm. We contribute to research on authenticity in hospitality by demonstrating that authenticity signals generate binding obligations and create vulnerabilities alongside assets.